Greece has just been given an ultimatum - make more budget cuts or they don't get the next chunk of bailout money. I'm guessing this is the big guns' way of forcing them to sort their sh*t out sooner rather than later, but the way things stand Greece are going to default on their debts if they don't get that handout by July. Some news sites say the deadline is the 3rd July, others say it's the end of July, but actually they have various different commitments - it's not 'consolidated' so it could be anytime July-onwards they lose their paddle on sh*t creek.

Long story short, it's looking like a sinking ship -

Jack Straw, amongst others, is saying RIP Euro,
http://www.bbc.co.uk/news/uk-politics-13839381

Greece is going to sell everything they own to try to raise $70billion,
http://blogs.forbes.com/afontevecchia/2011/06/20/europes-fate-hangs-from-a-thread-ahead-of-greek-confidence-vote/

The people are rioting,
http://www.washingtonpost.com/world/europe/greek-power-company-workers-start-strikes-against-privatization-potentially-causing-shortages/2011/06/20/AGrrZYcH_story.html

Bloomberg is saying

Greece needs to cover about 4 billion euros of bills maturing between July 15 and July 22, and faces about 3 billion euros of coupon payments in the month, according to Bloomberg calculations. A bigger test comes on Aug. 20, when Greece must redeem 6.6 billion euros of maturing bonds.

Some 20 billion euros of deficit cuts deepened Greece’s recession last year, leading to a 4.5 percent economic contraction. The deficit fell to 10.5 percent of gross domestic product, missing a 7.5 percent target. The EU predicts a 9.5 percent deficit in 2011.

http://www.bloomberg.com/news/2011-06-20/europe-fails-to-agree-on-greek-aid-payout-pressing-papandreou-to-cut-debt.html

Perhpas there is some merit in the idea that they should make a separate 'southern' Euro for the (amusingly named) 'GIPSI' countries - Greece, Ireland*, Portugal, Spain and Italy.

The Greek bailout is just sticking a plaster on a gushing arterial wound - they'll probably default at some point in the next few years anyway. Its essentially just bailing out French and German banks who are most exposed to greek debt, it isn't doing that much for Greece itself - the Greek people realise this and are rather pissed. It was hard enough for the govt to get these austerity measures through its going to be harder in future - politically I doubt they can keep making the cuts required. Should just face up to reality and get on with it now, default, leave the euro, get back their own currency, let it devalue then allow their economy to grow.





*(Yes Ireland isn't in southern Europe)